The commodity driven Canadian Dollar was trading slightly lower against its British counterpart when the North American session opened as concerns regarding the pace of Canada’s economic recovery weighed on the currency.
The Canadian Dollar Exchange Rate was in the region of 0.6251 against the British Pound as of 14:20 GMT
Worries that rate of economic recovery in the US might be outstripping Canada has seen the Canadian Dollar decline in recent days.
The catalyst for the ‘Loonie’s current bearish trend was Canada’s latest batch of GDP data, released on Friday. The growth report showed that the Canadian economy expanded by 0.1 per cent in April, following the previous month’s 0.2 per cent growth.
As Toronto-based industry expert Don Mikolich notes: ‘The data seems to be favouring the US lately and that’s seen Canada fall behind a little bit.’
Meanwhile, both the Pound and US Dollar have been supported by domestic news.
The CAD/GBP exchange rate hit a low of 0.6204
Sterling was lent support by data showing that the UK’s construction sector expanded in June, though by slightly less than estimated, while the ‘Greenback’ rallied yesterday after the publication of US manufacturing figures.
Since May the Canadian Dollar has shed 5 per cent against its American rival and weakened against several of its other most traded peers. Whilst a downturn in commodity-driven currencies is partly responsible for the drop, several investors have argued that there is more to the slump – such as the expectation that the nation’s housing boom could lead to a housing market crash.
Although Canadian data is in short supply this week, there are some figures to watch out for – such as Wednesday’s International Merchandise Trade data and Friday’s unemployment rate/employment change/Ivey PMI reports.
Fluctuations in the GBP/CAD pairing may also be inspired by UK news, particularly tomorrow’s services PMI figures and Thursday’s Bank of England rate decision.
Friday’s US employment data is expected to cause general market movement.
Current Canadian Dollar (CAD) Exchange Rates
< Down > Up – Little Changed
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9469 <
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7283 <
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6251 <
The Canadian Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0354 >
The Canadian Dollar /New Zealand Dollar Exchange Rate is currently in the region of: 1.2198 >
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.5996 >
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0567 >
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.3731 >
The New Zealand Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.8187 >
The Australian Dollar/Canadian Dollar Exchange Rate is currently in the region of: 0.9662 <
(Correct as of 14:20 GMT)
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